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Section C Sam is considering buying a $24 000 car. After five years, he will be able to sell the car for $8000. Gas costs
Section C Sam is considering buying a $24 000 car. After five years, he will be able to sell the car for $8000. Gas costs $2000 per year, insurance is $600 per year and parking is $600 per year. Maintenance is $1000 for first year and rises by $400 for every year after. The alternative is for Sam to take Uber which costs $6000 per year including an annual family vacation which costs $600 per year. If the discount rate'is 11% which option should Sam select? Section D
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